Appointment of Administrator upheld, with conditional leave for forensic examination of disputed receipts during administration or buyout.

Dispute concerns restoration of directors, appointment of an Administrator, and admissibility of forensic examination of disputed payment receipts. The tribunal affirmed administrative intervention where facts showed incomplete compliance with an alleged oral family settlement, unresolved cash-payment and forgery allegations, and non-production of key documents; it therefore declined to displace the NCLT's core directions restoring directors and appointing an Administrator. The order was modified to permit the Administrator, if presented with disputed receipts during administration or a buyout process, to apply to the NCLT for limited forensic examination of those receipts.

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Issues: (i) Whether the impugned order of the NCLT restoring certain directors and appointing an Administrator should be interfered with; (ii) Whether disputed payment receipts may be sent for forensic examination in the course of administration.

Analysis: The record shows allegations of an oral family settlement dated 04.02.2008, partial payments admitted by parties, disputed claims of cash payments, non-production of key documents and counter-allegations of forgery and non-compliance with the settlement terms. The NCLT appointed an Administrator to manage the company after finding circumstances warranting intervention, and also dismissed an application for forensic examination of documents at that stage. The appellate review examined admitted payments, pleadings and contemporaneous filings, and found that full compliance with the alleged settlement was not established and that disputes over payments and forgery allegations remain live. Given the possibility of a future buyout and the appellants' assertion of possession of receipts, limited scope for forensic examination was considered appropriate if the Administrator, in the course of administration, encounters disputed receipts and refers the matter back to the NCLT.

Conclusion: (i) The appeal is not allowed to the extent of displacing the NCLT's core directions; the impugned order restoring directors and appointing an Administrator is not interfered with. (ii) The impugned order is modified to permit the Administrator, if presented with disputed receipts during administration or a buyout process, to apply to the NCLT for forensic examination of those receipts. No other relief is granted in favour of the appellants.

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